The S&P 500 index has been on a bull run, driven by its largest components, but there are still plenty of reliable dividend-paying stocks that look like bargains. Johnson & Johnson, Agree Realty, and AbbVie offer enticing dividend yields at recent prices and have the potential to raise their payouts significantly in the future.
Johnson & Johnson recently spun off its consumer goods division, focusing on its pharmaceutical and medical technology businesses. The company’s dividend program is highly reliable, with a 3.3% yield at recent share prices. Rising pharmaceutical sales, including new cancer drugs, could lead to rapid payout growth in the coming years.
Agree Realty, a real estate investment trust (REIT), has tenants in recession-resistant industries and produces reliable cash flows through long-term net leases. Despite challenges from higher interest rates, the REIT has a 4.7% dividend yield at recent prices and is well-positioned for growth.
AbbVie, spun off from Abbott Laboratories in 2013, has seen its dividend payouts soar by 287% for investors who held on since inception. With a 3.6% yield at recent prices, AbbVie has faced pressure from declining sales of its lead drug, Humira. However, new treatments like Skyrizi and Rinvoq are offsetting Humira’s decline and driving sales growth.
Investing in these high-yield dividend stocks could lead to significant returns in the future. Consider the potential for growth and reliability in these companies when planning your investment strategy.